Purchase Order Workflows: Approval Steps That Catch Errors Early

Most "we got billed for something nobody approved" incidents come down to a missing PO workflow. You do not need enterprise procurement software to fix it — you need a clear, three-step process.

Step 1: Request

The person needing the goods raises a purchase request that captures: what, why, budget code, expected price. This stays internal and is not yet a PO.

Step 2: Approve

An approver (manager, finance, or owner depending on amount) reviews and approves. Approval thresholds keep it sane:

• Under $500: Auto-approve, single approver.
• $500–$5,000: Manager approval.
• $5,000+: Owner / finance approval, signed PO.

Step 3: Issue PO and send to supplier

The approved request becomes a numbered PO (e.g. PO-0042) sent to the supplier. Status is tracked: Draft → Sent → Acknowledged → Received.

The three-way match

When the invoice arrives, AP matches three documents: PO (what you ordered), delivery note (what arrived), invoice (what you are billed). All three must agree before payment. Mismatches are the single biggest source of overpayment.

Lightweight tooling

ProeInvoice's PO module handles numbering, status tracking, and lets you link each PO to its delivery note and invoice for an effective three-way match — without buying a procurement suite. See how it works.